Financial Planning 5 Situations When You Should Use Credit Instead of Debit Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on Tumblr (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Mint.com Published Oct 8, 2013 3 min read Advertising Disclosure The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Intuit may, but has no obligation to, monitor comments. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service. Credit or debit: that is the question. Numerous financial experts say you should always opt for debit over credit. The reason? By strictly making purchases with your debit card (or cash), you won’t spend more than what’s in your bank account. While that’s true, if you’re financially responsible, sometimes using a credit card is the wiser move. Here, 5 situations when you should choose credit over debit. If you’re repairing your credit Say you made a few money mistakes in college and now your credit score is lower than you’d like. Swiping your credit card can help your score inch upward, as long as your act responsibly. Debit card usage is not reported to the credit-reporting agencies. Using your credit card—and paying your bill in full, on time each month—helps you establish good, responsible credit history, increasing your score. If you’re stockpiling rewards Many credit cards offer excellent rewards programs where you can redeem points for air travel, hotel rooms, household electronics and appliances, or even college savings. Charging many (or even all) of your purchases—including recurring household expenses—can be a savvy way to rack up your earnings. If you’re making a large purchase Some credit cards offer extended warranty protection beyond what’s provided by the manufacturer or the retailer. Use your credit card to purchase your new refrigerator or flat-screen television and you’ll automatically receive this coverage. (Check your card terms for specifics.) If you’re going on vacation It’s best to pay with a credit card when booking a hotel and renting a car. Why? Many hotels and rental companies only accept credit cards when making a reservation. If they do accept debit cards, they may put a hold of several hundred dollars as a deposit. Until the hold is processed, you won’t have access to that cash. Secondly, using a credit card for travel-related purchases can give you instant access to perks, such as earning additional rewards points or complimentary car insurance for your rental car. If you’re shopping online When you buy something from a brick-and-mortar store, you leave the merchant with the item in hand. If you make a purchase online, you’re taking a bit of a risk since can’t examine the actual product until it arrives on your doorstep several days later. Using a credit card to shop online protects you in case something arrives damaged, was misrepresented in its listing, or if it gets lost in transit. (Negotiate with the merchant to settle the situation or ask your issuer to withhold payment to the retailer.) Otherwise, once you enter your debit card account information to make the purchase, the funds are immediately withdrawn from your bank account. Leaving you without cash and with little or no recourse. “5 Situations When You Should Use Credit Over Debit” was provided by CreditSesame.com Credit Sesame is the consumer’s credit and loan expert, helping you make smarter financing decisions. Sign up today to get your free credit score, free monthly credit monitoring, and learn how to save more on your credit cards, loans and mortgage. Previous Post Financial Advice: 12 Personal Finance Tips Next Post 7 Spooktacular Ways to Save On Halloween Candy Written by Mint.com More from Mint.com Browse Related Articles Mint App News Intuit Credit Karma welcomes all Minters! Retirement 101 5 Things the SECURE 2.0 Act changes about retirement Home Buying 101 What Are Homeowners Association (HOA) Fees and What Do … Financial Planning What Are Tax Deductions and Credits? 20 Ways To Save on… Financial Planning What Is Income Tax and How Is It Calculated? Investing 101 The 15 Best Investments for 2023 Investing 101 How To Buy Stocks: A Beginner’s Guide Investing 101 What Is Real Estate Wholesaling? Life What Is A Brushing Scam? Financial Planning WTFinance: Annuities vs Life Insurance